4th year clause,housing assoc won't allow us to re

[deanno]

Hi, to be honest i should have sorted this out a few months back, but still sort of burying my head in the sand. But i have also had worry at work and whether i would be made redundant and the situation hasn't changed much.( my job is connected to Vauxhall IBC in Luton). Anyway had a few valuations done and house price has dropped and then spoke to the Housing Assoc. only for them to say we can't re-mortgage for the 4th clause. Now from reading on here and i'm sure it states in my proposal that i could possibly pay for another year,6 instead of 5. I have contacted my IP via e-mail over the last week or so,but not had any reply yet, i hate using the phone,trouble hearing.
Could it be because i have left all this a bit late that i will be made bankrupt and lose my home. I have never missed a monthly payment and i think the 5 years is almost up. I know its my fault, but all the worry is coming back.

Dean

[deanno]

me again. This is a shared ownership property with us holding 30%. The IP was made aware of this from the beginning but we were never asked to find out if we could re-mortgage before we started an IVA.

[Shining]

I think a lot of people whether in shared housing or not will have a problem trying to remortgage and go down the extra year route deanno.

I would suggest you resend the email direct to your IP for a response and hope you get a reply very soon. I don't think it's in anyones best interest for your IVA to fail now so close to the end.

[Michael Peoples]

Hi Deanno. If the property has dropped in value there may be no equity so the IVA can be closed down after 5 years. It is quite common for shared ownership schemes to bar capital raising on a remortgage so if there is equity it can be extended easily. Creditors will understand as will your IP.

[deanno]

Ok,finally got a reply. My IP is saying my 50% share of the equity is around £8000. As i can't re-morgage than this could be spread over the 6th year. I think this is a little excessive when my monthly IVA payment is £300. They have also asked me to fill in a I & E form to see what i can afford to pay. What would happen if i can't afford to pay much more than i'm all reading paying, can i be forced to sell. Is there a list on here that helps when filling out the I and E form, because i know i will forget something.


Thanks Dean

[Michael Peoples]

You should only have to extend by twelve months at the level you can afford. If possible you could offer third party funds in lieu of the equity but an additional twelve months at £300 should satisfy creditors.

[Bridgewood]

Hi Deanno,

If you have equity in the property and are unable to remortgage (your share) you will normally be asked to pay into the IVA for an additional 12 month, as already stated this should still be based on an affordable amount for you.

I would hope that your IP is confirming you I&E to ensure your details are still accurate and your monthly repayments may be adjusted accordingly but you should not be asked to repay an unrealistic sum if you simply do not have the funds.

Regards

[MelanieGiles]

An equity release provision for a shared ownership property should never have been included or accepted, as no mortgage lender will entertain a re-mortgage unless you borrow sufficient to buy out the co-owner's share.

Given the age of your IVA, I doubt that you have the provision to pay out the equity over a further year without a specific resolution from your creditors. Best to check this out with your IP directly just to be sure.

[deanno]

An equity release provision for a shared ownership property should never have been included or accepted, as no mortgage lender will entertain a re-mortgage unless you borrow sufficient to buy out the co-owner's share.

Given the age of your IVA, I doubt that you have the provision to pay out the equity over a further year without a specific resolution from your creditors. Best to check this out with your IP directly just to be sure.

Hi, Melanie i'm sorry but i don't quite understand what you mean . This is the e-mail i received from my IP.

Further to the equity release pledged into the arrangements, I can confirm that the requirements were as follows:



In the fourth year of the Arrangement the property at *****, ******* shall be professionally valued and fifty percent of my equitable interest shall be realised and paid to my Supervisor for the benefit of creditors before the end of the term of the Voluntary Arrangement. Alternatively, at my option, the Arrangement can be extended to allow an equivalent sum to be paid by way of ongoing contributions during a period of up to twelve months. My Supervisor shall register a restriction at HM Land Registry to protect creditors’ interests.



I would be very grateful if you could send us a copy of the valuation obtained and a recent mortgage redemption statement confirming the numbers you have detailed.



I further note the comments of the Housing Association which prevent you from releasing any equity.



I have discussed the situation with Mark, and would like to highlight the further option of extending the IVAs for a year to allow for the equivalent sum to be paid in.



The numbers you have provided suggest that the equivalent sum would be approximately £8,000 over a period of 12 months.



If this is not an option, I would be very grateful if you could complete the attached monthly income and expenditure sheet, reflecting your circumstances, and we can ask creditors to vary the above terms and propose an extension of 12 months at a more affordable contribution.



Kind regards

[RHB]

From reading that it sounds as though you will be paying for an exra year & that if you can't afford the amount suggested they will look to vary it. Best send your I & E shheet in & in another year you should be debt free!!!

[Bridgewood]

Morning Deanno,

Having read the email from you IP, yes they have asked that you pay the equity amount of £8k over the next 12 months, however they have also stated that if this is not an option (which it isn't by the sounds of your comments based on affordability) then you need to provided them with details of your current I&E so they can see how much to can afford to pay for the additional 12 months.

You should complete the I&E form with your current details and make sure you don’t leave anything out to ensure you only pay what you can actually afford.

Good luck

[kallis3]

I hope you can get this sorted deanno - I'm sure your IP and creditors will be sympathetic.

It is in no ones interests to let the IVA fail now.

[Julie]

Good luck Deano and please keep us updated xx

[Shining]

good luck from me too and do let us know how you get on won't you x

[deanno]

Ok latest news. I have filled in an I&E form and sent that off. Also had to provide the last mortgage statement and a house valuation. Just waiting on the outcome now and i pray it's good news. Still paying the monthly payment, now in month 62.

Deanno